Good day forex traders.
It was an excellent week for the bullish traders and I hope you are one of them. 😉
In the previous AUD/USD forecast we noted that the currency pair was bullish for the week. As far as a bullish trend was concerned, the bollinger bands serving as resistances had to come down first. In the immediate region was the middle bollinger band.
Looking at the AUD/USD weekly chart above we note that the currency pair had a strong bullish momentum. Both the middle and upper bollinger band were breached.
The long term bullish target is probably 0.76 as seen on the chart. Having said so, we may see a consolidation towards the upper bollinger band. Should the resistance turned support level collapses, it will open up the middle bollinger band region as the next bearish target.
We need to zoom into the shorter timeframes to ascertain the price action. 0.735 may be an immediate support while 0.75 may function as an immediate resistance.
The Australian economy produced a better than expected GDP. This probably flooded the market with positive sentiment. A number of analysts were concerned due to the recent China turmoil. The GDP report brought some relief.
The Reserve Bank of Australia held on to the current interest rate. While this was expected, traders were expecting a dovish stance due to the recent market woes. The event turned out to be rather neutral and this brought back demand for the Australian dollar.
China reported that it is aiming to maintain the growth rate. It is acknowledged that the challenge will be tough. As Australia’s major trading partner, developments in China will likely affect the Australian economy.